Ca Mau Petroleum Fertilizer Joint Stock Company (Ca Mau Fertilizer - stock code: DCM) has just held the 2025 annual general meeting of shareholders.
Minutes of the meeting recorded that one of the issues of concern to shareholders was how the conflict in Israel with Iran would affect the operation of the fertilizer market.
The company's leadership said the war between Israel and Iran has increased tensions in the Middle East, which has had a profound impact on the global economy . At the beginning of the year, the world economy was in a deflationary trend, with oil prices plummeting to $61-64 per barrel.
However, under the influence of the conflict, oil prices have increased to 74 USD/barrel and are forecast to continue to increase to 100-120 USD if tensions persist.
Leaders of Ca Mau Fertilizer in the meeting (Photo: DCM).
For Ca Mau Fertilizer, input gas prices are directly related to oil prices. When oil prices decrease, input gas prices decrease, thereby contributing to reducing production costs. Conversely, when oil prices increase, input costs also increase, affecting the cost and competitiveness of fertilizer products.
Although fertilizer prices spiked in 2022 due to the impact of the Covid-19 pandemic and the Russia-Ukraine conflict, the company's leaders believe that this scenario is unlikely to be repeated completely. Currently, Vietnam has four urea factories operating stably, the company can meet domestic demand well and has a surplus for export.
World fertilizer prices have fluctuated strongly recently, however domestic prices tend to be more stable, with a slower rate of increase or decrease.
Regarding the prospects for nitrogen fertilizer in the second half of the year, business leaders said that domestic demand for nitrogen fertilizer is quite stable. While rice prices in the Mekong Delta and Vietnam will decrease at the end of the 2024 Winter-Spring crop, they are currently 15-20% higher than in the 2020-2022 period.
Although not as efficient as in recent years, the market remains stable. From now until the end of June, the company's signed orders have exceeded production output.
This year, Ca Mau Fertilizer plans to have revenue of 13,983 billion VND; profit after tax of 774 billion VND, down 46% compared to last year.
Shareholders questioned the reason for the company's lower post-tax profit plan than the actual results in recent years (over VND1,000 billion). The management board said the plan was set in the context of the market still having many unpredictable fluctuations related to oil prices and urea prices - 2 factors that directly affect the company's input costs and business results.
At the same time, the management board always closely monitors the market situation, proactively seizes business opportunities to optimize profits and often adjusts the plan at the end of the year when risk factors are clearer.
Regarding dividend policy, the company maintains a rate of 20%, and transfers more than VND 600 billion of undistributed profits from 2024 to 2025 as a reserve to help strengthen financial capacity and ensure working capital flow, especially in the context of many uncertain market factors.
Source: https://dantri.com.vn/kinh-doanh/ong-lon-dam-ca-mau-du-bao-gi-ve-gia-phan-bon-giua-xung-dot-trung-dong-20250618085146844.htm
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